Issue of the first Green Panda Bond in China.

The bond, which was 3.1 times oversubscribed is guaranteed by Mercedes-Benz Group AG (ticker symbol: MBG). The issuance was arranged by Bank of China and HSBC.

It is Mercedes-Benz’s first Green Bond outside of the European market and Mercedes-Benz is the first automotive company to issue a Green Panda Bond in China.

The bond was issued in line with China domestic Green Bond standards and with the Mercedes-Benz Ambition 2039.^[1]The ambition of the Mercedes-Benz Group is by 2039 to reduce its CO₂ emissions by 90% in its own production, by 80% in the vehicle use phase, where market conditions permit, and by 70% across all relevant stages of the value chain, compared to 2019. In addition, the Mercedes-Benz Group supports qualified climate change mitigation projects that meet recognized standards. By 2049 at the latest, the Mercedes-Benz Group intends to achieve net-zero. Net-zero means that the CO₂ emissions will be reduced by at least 90% compared to 2019. Remaining CO₂ emissions (< 10%) will be neutralized permanently.
Net proceeds will go to Mercedes-Benz subsidiary Mercedes-Benz Leasing Co., Ltd. located in in China, which will use these funds for financing new customer leasing contracts with Battery Electric Vehicles.

Back to 2014, Mercedes-Benz Group became the first foreign non-financial corporate that issued a Panda Bond. In 2021, Mercedes-Benz Group became the first foreign "seasoned issuer” and since then issues public offering Panda Bonds. Since 2014, Mercedes-Benz Group AG has issued 35 tranches with a total amount of RMB 81 billion (approx. EUR 11 billion), promoting the development of the Panda Bond market. The issuance of the Green Panda Bond is not only an effective extension of Mercedes-Benz Group’s sustainable business strategy, but also a brand-new green finance exploration to the Chinese market. At the same time, the Green Panda Bond further reflects the openness and innovation of the Chinese capital market in ESG sectors.